Getting a W2 and 1099 NEC, in business with my husband

[BCholt12]

My husband and I started working for the same company last year as a side business and we each receive a 1099 NEC.  I am a full time employee and receive a W2 from my employer but also receive a 1099 NEC.  I am putting all expenses under my husbands schedule C.  Do I have to set up another business for myself or can I put my 1099 NEC information under my husband's income or maybe report it under Miscellaneous Income?  Thank you...

[FangxiaL]

Since the 1099-NEC is in your name and your SSN, you need to enter it with your name as the recipient. It should be a separate Schedule C on your tax return. You can deduct all the expenses on your husband's Schedule C, or if any expenses were incurred by you, you should deduct them on your Schedule C. They should be reported as self-employment income, not Miscellaneous income because the IRS wants you to pay self-employment tax. 

[BCholt12]

Just one more question, do I need to set up this business as a separate business on my husband's schedule C?  He currently has a drone business, this business is a scanning business.  Thank you 

[VolvoGirl]

You need your own schedule C separate from his schedule C even if the 1099 is from the same company.   Sounds like he might need a second schedule C for himself too?   Yes.

To add another business or Schedule C….

Go to Business tab-Continue

Business Income and Expenses

Profit or Loss from Business, click Start or Update.

You should see the Business Summary page that lists your businesses, right below the list you can Add Another Business.

Be sure to add it under the right spouse if you are married.

[VolvoGirl]

I just made you a screen shot.  Hope it helps.

[BCholt12]

Perfect!  Thank you so much!! 🙂